THE GOVERNMENT: In Reserve

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In anticipation of Secretary of Commerce Harry Hopkins' maiden speech to U. S. Business (see p.11) the New York stockmarket last week popped out of its rut. More significant was the rise in stock prices morning after the appeasement speech—indicating that Wall Street at least was impressed. So was business generally. Although the New York Sun indulged in a Tory sniff ("Honeyed words, meaning little"), most press and business comments took the charitable point of view that Secretary Hopkins really meant what he said.

Settlement of the TVA dispute three weeks ago on close to Wendell Willkie's terms was clear enough evidence of the New Deal's intent to break the utility log jam. Besides that, Treasury experts have already drafted 85 proposed revisions of taxes which now deter business; Franklin Roosevelt himself last week plumped for A. F. of L. -C. I. 0. peace and proposals by the nation's stock exchanges to reshape the Securities acts in order to revive the dormant capital market have actually been "welcomed" by SEC.

One good reason why politically-wise Harry Hopkins made no specific suggestions in his speech was explained by the Wall Street Journal: "Various New Deal officials and agencies had squared away for an open fight on Mr. Hopkins if he stuck a critical finger publicly into their particular affairs and the Secretary was content ... to deal in generalities . . . and keep specific suggestions in reserve. . . ."

Harry Hopkins was not solely responsible for his Des Moines speech. As with most key New Deal utterances these days, it was guided to the microphone by Janizary Thomas Corcoran. Economist Willard Thorp contributed the part on labor, Lawyer Ben Cohen the part on utilities.

For business advice, ex-Social Worker Hopkins relies on President William Loren Batt of SKF Industries, Inc., Treasurer Beardsley Ruml of R. H. Macy & Co. and Chairman W. Averell Harriman of Union Pacific R. R. Dynamic Mr. Batt is an expert on scientific management; jovial Mr. Ruml used to be dean of the social sciences at the University of Chicago; swank Mr. Harriman, long interested in the New Deal, chairmans the Commerce Department's Business Advisory Council. Last week he flew to Des Moines from his Union Pacific's Sun Valley playground, on Harry Hopkins' advice did not bother to bring his dinner jacket. The one Speaker Hopkins wore was rented at the last minute.